House GOP likely to seek changes in Kasich budget

Tuesday

Apr 26, 2011 at 12:01 AMApr 26, 2011 at 10:01 AM

House Republicans have sifted through about 1,000 proposed budget amendments and on Thursday plan to roll out their first wave of changes, which are likely to include altering Gov. John Kasich's school-funding proposal and his plan to shift more pension payments to public workers.

House Republicans have sifted through about 1,000 proposed budget amendments and on Thursday plan to roll out their first wave of changes, which are likely to include altering Gov. John Kasich's school-funding proposal and his plan to shift more pension payments to public workers.

Republicans, particularly those representing suburban school districts, have come under fire for some of the steep cuts in Kasich's proposed $55.5 billion budget. Some, including Rep. Cheryl Grossman, R-Grove City, have proposed changes that would provide relief.

"I'm not sure, based on the economic times we're in, where this is going to go," Grossman said.

She would not talk specifically about her proposal but said it will deal with delaying the phaseout of state reimbursements of lost revenue from the tangible personal-property tax.

When asked about proposed cuts to schools and local governments, Kasich often talks about his proposal to increase workers' pension contributions by 2percentage points and reduce the government's share by the same amount.

For schools, the shift would save an estimated $423 million over two years. But there is a significant problem: The state's massive public-pension systems say that the shift would do considerable harm to recently developed plans to fix their long-term solvency issues.

Rep. Ron Amstutz, R-Wooster, the chairman of the House Finance Committee, has strongly hinted that the pension shift will not remain as is. There is talk around the Statehouse that it could be pulled out of the budget.

"That's a topic we are very concerned about," Amstutz said yesterday.

Last week, he said that it's "getting lots of extra attention because it's so important in multiple ways. It's connected to so many other things."

The House is dealing with the public pensions in separate legislation sponsored by Rep. Lynn Wachtmann, R-Napoleon. He said it remains his preference that the 2percent pension shift be pulled out of the budget and dealt with in his bill.

Wachtmann said he is OK with the shift, but lawmakers need to be sure that the pension systems emerge on sound footing.

Wachtmann noted that the State Teachers Retirement System proposal already calls for teachers to pay an extra 3 percent of their salary toward their pensions. Add it to Kasich's proposed 2 percent shift, and that's a 5 percent loss in take-home pay.

"Are we going to be willing to do that? That's a question I don't seem to get a lot of solid answers on," Wachtmann said.

The chairman of a subcommittee considering revisions in the state retirement systems, Rep. Kirk Schuring, R-Canton, expressed concern that the pension shift - "as well-intended as that is" - throws the painstakingly prepared recovery plans by the five pension funds out of balance.

After rolling out their changes on Thursday, House Republicans expect to hold public hearings on Friday, Saturday and Monday. The plan is to have a full House vote on May 5. The measure then would go to the Senate.

With state tax revenue significantly outpacing estimates this year, there is an expectation that revised estimates for the new budget will provide more money.